Escape the dilemma

On one hand, product lines and product variety have increased continuously in the last few years, while, on the other hand, demand for individual products has decreased and become more sporadic. Additionally, customers demand shorter delivery periods. The negative consequence is an increase of logistical costs, which reduces profitability and competitiveness. A&K helps you to solve this dilemma.

 

Consumption Value vs. Regularity of Demands

Consumption Value vs. Regularity of Demands

Reducing costs caused by an increasing variety of products is a permanent and major topic for your company, if you want to remain competitive on the market.

Yet, a sporadic (hopefully repeated) clean up of the product portfolio is better than no clean up at all. It requires systematic measures to regain control, though. In decades of experience, A&K has proven that this is possible and that it is a question of statistics rather than gut feeling.

A&K uses standardised measures: Our consultants analyse your product portfolio and, using statistical analyses, structure an initial portfolio maintenance process. We apply simulations to calculate the individual impact of portfolio adjustments on sales, logistical costs and expenses. Since a part of the inefficiencies generated by a broad product portfolio can be eliminated through the adjustment of product-specific logistic parameters, such as lot sizes, quantities, delivery dates or safety stocks, we take this optimization perspective into account, too. If necessary, our consultants also review the contribution margins of your products.

As the last step, you will learn to manage the product portfolio maintenance process yourself.

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